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Turning Unemployment Into Self-Employment: Effectiveness of Two Start-Up Programmes [previous version: Turning Unemployment Into Self-Employment: Effectiveness and Efficiency of Two Start-Up Programmes]
| Authors | Baumgartner, H.J. and Caliendo, M. |
| Year | 2008 |
| Reference | Oxford Bulletin of Economics and Statistics, 70(3), 347-373. |
| Keywords | Start-up Subsidies, Evaluation, Effectiveness, Self-Employment. |
| JEL-Classification | J68, C14, H43, M13 |
| Presentations | BenA in Berlin, Ratio Colloquium for YSS in Stockholm, 2007 ESEM in Budapest, 2007 Verein für Socialpolitik in Munich. |
| Download | IZA Discussion Paper from March 2007:   PDF |
| Abstract | Turning unemployment into self-employment has become
a major focus of German active labour market policy (ALMP) in recent
years. If effective, this would not only reduce Germany's
persistently high unemployment rate, but also increase its
notoriously low self-employment rate. Empirical evidence on the
effectiveness of such programmes is scarce. We evaluate the
effectiveness of two start-up programmes for the unemployed, where
we include the probability of being employed, the probability of
being unemployed, and personal income as outcome variables. Our
results show that at the end of the observation period, both
programmes are effective. The considerable positive effects present
a stark contrast to findings from evaluations of other German ALMP
programmes in recent years. Hence, ALMP programmes aimed at moving
the unemployed into self-employment may prove to be among the most
effective, both
in Germany and elsewhere. |
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